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Sandra Poirier, EdD, CFCS, LD/N Middle Tennessee State University

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1 Sandra Poirier, EdD, CFCS, LD/N Middle Tennessee State University
The New “solutions economy” and how it works globally to solve problems video In Future Shock written by futurists Alvin Toffler in 1970T argued that society is undergoing an enormous structural change, a revolution from an industrial society to a "super-industrial society". This rattling and shaking of society overwhelms people. He believed the accelerated rate of technological and social change left people disconnected and suffering from "shattering stress and disorientation"—future shocked. Toffler stated that the majority of social problems are symptoms of future shock. In his discussion of the components of such shock, he popularized the term "information overload.“ Yes, I think we all agree that we are now living in a world described by Tofflner where rising obesity. Food insecurity, a lack of quality for some, and safe water for the poor in the developing world. Whose job is it to solve these problems? For decades the answer to thst question has been simple—government. Today we have a different world where a new economy has emerged. The new “solutions economy” represents not just sn economic opportunity , but a new strategy for solving many of the entrentched societal problems. (go to next slide) Solving societal problems is no longer just government’s job. A broadening array of individuals and organizations—public, private, not-for-profit—are working together to address societal issues. As the recent recession and the resulting damage made clear, creeping social problems, such as crumbling roads, safe and affordable housing for lower-income families, and crowding schools, do not yield when markets slow and government budgets tighten. Fortunately, as Paul Macmillan and I argue in our new book, The Solution Revolution: How Business, Government, and Social Enterprises are Solving Society's Toughest Problems,1 government is no longer the only game in town when it comes to societal problem solving. This collection of articles explores how, in today’s new “solution economy,” solving social problems is becoming a multidisciplinary exercise that challenges businesses, governments, philanthropists, and social enterprises to think holistically about their role and their relation to others—not as competitors fighting over an ever-shrinking pie, but as potential collaborators looking to bake something fresh that serves as many stakeholders as possible. I am very pleased to be here today and to be apart of this conference. I had originally titled my presentation on the Positive Impact on Global Health and Nutrition Using a Shared Value Concept, but then decided it was too narrow a topic, so changed the title to the New Solutions Economy and How it Works Globally to Solve Problems. Williams Eggers and Paul McMillan, authors of book titled The Solutions Economy: How Business, Government and Social Enterprises Are Teaming Up to Solve Societies Toughest Problems. As we all know the world is full of big problems and that we usually expect government to help us solve. And yet, we seem unable to do so. What is stopping government from being able to work on some of these big problems? The recent government shutdown has underscored that we can’t count on politicians to solve the world’s many pressing social problems; they’re too preoccupied with combatting one another. And the billions of dollars we spend in foreign aid isn’t necessarily the solution either. As Angus Deaton, an expert on global poverty, argues in his new book The Great Escape, aid money may even do more harm than good. Now more than ever we need the fast-growing community of social entrepreneurs to fill this leadership void to develop innovative solutions to the world’s problems. The other problem is that there is very little we have not asked from government in modern times. We ask gov. to keep us safe from terrorists, to protect our privacy, to provide housing for everyone, to eliminate obesity, to bail out the banks, to and so forth. Public health agencies, which are finding obesity programs, while the Department of Agriculture subsidizes sugar. Or, transportation departments might fight traffic congestion on the one hand while subsidizing road use on the other. And so when government’s trying to do so many things, it’s very hard to do them well. And then when you have such a polarized political atmosphere, it’s very hard to kind of agree on what the right approach is for any given issue. Government Alone Can’t Solve Society’s Biggest Problems World hunger. Climate change. Crumbling infrastructure. It’s clear that in today’s era of fiscal constraints and political gridlock, we can no longer turn to government alone to tackle these and other towering social problems. What’s required is a new, more collaborative and productive economic system. The Solution Revolution brings hope—revealing just such a burgeoning new economy where players from across the spectrum of business, government, philanthropy, and social enterprise converge to solve big problems and create public value. By erasing public-private sector boundaries, the solution economy is unlocking trillions of dollars in social benefit and commercial value. Where tough societal problems persist, new problem solvers are crowdfunding, ridesharing, app-developing, or impact-investing to design innovative new solutions for seemingly intractable problems. Providing low-cost health care, fighting poverty, creating renewable energy, and preventing obesity are just a few of the tough challenges that also represent tremendous opportunities for those at the vanguard of this movement. They create markets for social good and trade solutions instead of dollars to fill the gap between what government can provide and what citizens need. So what drives the solution economy? Who are these new players and how are their roles changing? How can we grow the movement? And how can we participate? Deloitte’s William D. Eggers and Paul Macmillan answer these questions and more, and they introduce us to the people and organizations driving the revolution—from edgy social enterprises growing at a clip of 15 percent a year, to megafoundations, to Fortune 500 companies delivering social good on the path to profit. Recyclebank, RelayRides, and LivingGoods are just a few of the innovative organizations you’ll read about in this book. Government cannot handle alone the huge challenges facing our global society—and it shouldn’t. We need a different economic paradigm that can flexibly draw on resources, combine efforts, and create value, while improving the lives of citizens. The Solution Revolution shows the way. (less) Sandra Poirier, EdD, CFCS, LD/N Middle Tennessee State University

2 The Global Challenge Almost one billion people suffer from chronic hunger More than 3.5 million children die from undernutrition each year The world’s population will increase to more than 9 billion by 2050 Food production will have to increase by 70% to feed the world Global Problems As the recent recession and the resulting damage made clear, creeping social problems, such as crumbling roads, safe and affordable housing for lower-income families, and crowding schools, do not yield when markets slow and government budgets tighten. Fortunately, as Paul Macmillan and I argue in our new book, The Solution Revolution: How Business, Government, and Social Enterprises are Solving Society's Toughest Problems,1 government is no longer the only game in town when it comes to societal problem solving. This presentation explores how, in today’s new “solution economy,” solving social problems is becoming a multidisciplinary exercise that challenges businesses, governments, philanthropists, and social enterprises to think holistically about their role and their relation to others—not as competitors fighting over an ever-shrinking pie, but as potential collaborators looking to bake something fresh that serves as many stakeholders as possible.

3 agenda Changes Impacting all Global Societies
What is a Solutions Economy Creating a “Solutions Economy” through Partnerships Measuring Success  Some Case Studies Illustrating “Solutions Economy “in a Global Context

4 Definitions The Solutions Economy-the public space where public problems are solved. There are new entrants into societal problem solving and there are new methods by which problems are being addressed. Global issues that are being solved most successfully have a variety of players who have identified a gap or a need that needs to be addressed, and try to understand how improvements can be measured or tracked as part of that activity. revolution.html video

5 Global economic growth is set to slow dramatically.
Without action, global economic growth will almost halve in the next 50 years. A new McKinsey Global Institute report offers a solution: a dramatic improvement in productivity. ver the past 50 years, global economic growth was exceptionally rapid. The world economy expanded sixfold. Average per capita income almost tripled. Hundreds of millions of people were lifted out of poverty. Yet unless we can dramatically improve productivity, the next half century will look very different. The rapid expansion of the past five decades will be seen as an aberration of history, and the world economy will slide back toward its relatively sluggish long-term growth rate (Exhibit 1).

6 How Can Public and Private Sectors Sustain Economic Development and Business
Population growth. The global population recently crossed 7 billion and is increasing by about 70 million people per year, with most of the growth in emerging economies.11 Total global population is expected to reach 8.1 billion by 2025 and 9.6 billion by Energy demand. Global primary energy consumption is projected to grow by 1.6 percent per year from 2011 to 2030, adding 36 percent to global consumption by Water demand. By 2030, assuming an average growth scenario and if no efficiency gains are realized, global water requirements will grow from 4,500 billion cubic meters to 6,900 billion cubic meters—about 40 percent above current accessible and reliable supplies.14 Urbanization. More than half of the global population now lives in cities, and increasing urbanization results in increased industrialization and increased water use.15 Food demand and changing diets. In the last three- and-a-half decades, food consumption increased from an average of 2,370 kcal/person/day to 2,770 kcal/person/day. This growth was accompanied by significant dietary changes, as diets shifted toward more livestock products and vegetable oils and away from staples such as roots and tubers. Total food consumption globally, as measured in kcal/person/day, is projected to increase from 2,373 in 1969/1971 to 3,070 by 2050. One of the greatest challenges of the 21st century is the problem of how the public and private sectors can sustain economic development and business growth in the face of accelerating demand for water, energy, and food. “Business as usual” projections of scarcity in water, energy, and food predict a lack of these resources sufficient to sustain economic and business growth as well as an adequate standard of living worldwide. Especially troublesome is that many of the low- and medium-income economies, which many multinational companies are targeting for growth, are where water, energy, and food shortages are expected to be most acute The significance of the water-energy-food nexus comes to life when one looks at its current and projected economic impact. Brazil, for instance, offers an example of the “ripple effect” of water scarcity on food and power production and economic impact.7 The country is experiencing a persistent drought whose economic impacts were identified early in 2014 by the Wall Street Journal (WSJ).8 According to this WSJ survey, “The biggest shock will come from food costs because the ongoing drought is pushing up the price of fruits and vegetables.” The drought is projected to continue to affect the production of coffee, sugar cane, and other crops, with a resultant fallout to the country’s economy. World agriculture towards 2030/2052: The 2012 revision, ESA Working Paper No

7 Trends at a Glance

8 Among the many forces that are working to advance the solution economy
Seismic shifts in technology Big data is becoming a currency and transforming the science of impact evaluation Business’ growing belief that caring solely about profits is simply not rational anymore Public-private partnerships for purpose are rapidly multiplying It’s the best and worst of times for decision makers. Swelling stockpiles of data, advanced analytics, and intelligent algorithms are providing organizations with powerful new inputs and methods for making all manner of decisions. Corporate leaders also are much more aware today than they were 20 years ago of the cognitive biases—anchoring, loss aversion, confirmation bias, and many more—that undermine decision making without our knowing it. Some have already created formal processes—checklists, devil’s advocates, competing analytic teams, and the like—to shake up the debate and create healthier decision-making dynamics. Even while so many have struggled during the historic economic downturn, we’ve also seen a massive growth of economic activity targeted at solving larger social problems. A burgeoning new solution economy has emerged where players from across the spectrum of business, government, philanthropy, and social enterprise converge to solve big problems and create public value. Over the last decade or so, a dizzying variety of new players have entered the societal problem-solving arena. Lyft and Relay Rides, Acumen and Ashoka, Kiva and Kaggle, SpaceX and M-Pesa, Branson and Bloomberg, Buffet and Gates—the list is long and growing briskly. Where tough societal problems persist, these new problem solvers are crowd-funding, ridesharing, app-developing, and impact-investing to design innovative new solutions for seemingly intractable issues.

9 ICT Creating society benefits
Networked Society Lab January 2015 ICT Creating society benefits PEOPLE PROFIT PLANET Social Progress Education Health Inclusion Environment Progress Resources Pollution Climate change Internet Connecting Technology Economic Progress Productivity Competitiveness © Ericsson AB 2015

10 NEW BEHAVIORS Every day Networked Society Lab January 2015
$13 million crowdfunding 700,000 new internet users $2,7 billion e-commerce Every day 2.7 billion likes on Facebook 133 million hours YouTube video watched 328 million app downloads 2.7 billion photos posted © Ericsson AB 2015

11 More function 1991: Total Cost $3054.82 2015: Smartphone $299.00
Networked Society Lab January 2015 More function With our Smart Phones the Guardian has indicated that as many as 8.4bn connected things are forecast to be in use this year. 1991: Total Cost $ : Smartphone $299.00 © Ericsson AB 2015

12 The Circular Economy Using Smart phones in the circular economy
In the food sector, the business case has already been made for smart technology. “Time temperature indicators”, for example, monitor supply chains, minimise wastage and maximise shelf life, according to Will Schreiber, partner at 3Keel. “Food quality and safety are by far the biggest motivators for companies to adopt smart technology. There are cost savings, but the ability to retain high-value goods through better monitoring, efficient processing and precise controls means fresh foods can get to customers faster in complicated logistics systems.”

13 Ideas as to How to change the world

14 New and innovative approaches to tackling societal challenges

15 We need Triple-Strength Leaders to Create Change
To solve our most vexing problems, we need executives who can move easily among the business, government, and social spheres. by Nick Lovegrove and Matthew Thomas Unconventional Solutions (February 16, 2012) As the world experiences a triple crisis in finance, development and the environment, innovative and unconventional solutions are urgently needed. Yet as new ideas and solutions to society’s problems are explored, one has to be careful not to assume the universal applicability of these solutions. What works in one country or region might not work in another. The histories and cultures of countries are so different that the paths they take are bound to differ. This piece of the spring 2012 issue of Stanford Social Innovation Review reminds its reader that solutions for today’s social, economic and environmental problems will and ought to come in different forms. (Stanford Social Innovation Review)

16 CISCO-Chuck Robbin, CEO
I truly believe that we are at our best when we combine our business strength with our desire to do good things in the world.” Chuck Robbins, CEO

17 “The Best Way to Predict the Future is to Create it” by Peter Drucker
As it was stated by the Cisco Executive, The Future is ours to create. Shared Value Partnerships are being created around the world.

18 What is a global problem solver?
The world faces a confluence of grand problems, digital transformation, and rapid changes within the workforce. We need individuals who have the desire, knowledge, and skills to help people thrive, build new commerce, and become guardians of our planet. There has never been a better time to be a global problem solver.

19 Here are six top qualities of a Global Problem Solver
(what is a global problem solver Everyone has the power to make a difference, whether big or small, local or global. A new study, ‘Social Change Impact Report,’ just released by Walden University identifies six distinct types of social change agents who are doing critical work around the world. The six are: Ultra-committed Change-Makers; Faith-Inspired Givers; Socially Conscious Consumers; Purposeful Participants; Casual Contributors and Social Change Spectators. Each group is unique in terms of engagement, motivation and causes. The study is a perspective of 9,000 adults in Brazil, Canada, China, Germany, India, Jordan, Mexico and the U.S., discovering more about the people involved in positive social change.

20 Digital Skills You don’t just use technology, you embrace it. People who can build networks, develop apps, secure devices, or analyze data can bring ideas to life.

21 Creativity You love dreaming up new ways to make things better for others. Innovative ideas are the foundation for addressing the challenges we face.

22 Critical Thinking There’s no obstacle you can’t reason your way through. People who are curious, ask questions, analyze information, and evaluate options are essential to solving problems

23 Entrepreneurial Spirit
To you, a challenge is just an opportunity waiting to happen. People who are willing to try new things and lead others can turn their ideas into action.

24 Social Consciousness You know “changing the world” is a must, and you have a role to play. People with a sense of service inspire others and spark transformation.

25 Teamwork Skills You communicate well and respect others. The best problem solvers realize they are stronger working together than powering through alone

26 Statistics that Illustrate a Global Problem Solver in the US
4.5M in 5 years People working on the Internet of Everything Innovate as a technologist 3M Jobs created each year in the U.S. by start-ups Think as an entrepreneur 90% Millennials who want to use their skills for good Act as a social change agent

27 Promotes Global Health and development
In Washington, D.C., where it’s already difficult to get things done, governing is likely to get exponentially harder in coming decades as the baby boomers retire and fiscal pressures mount sharply. More states and localities will also face budgetary crises as pension bills come due and as fiscal conservatives prioritize tax cuts over public investment. So where will the leadership and money come from to take on urgent challenges? In Michigan and beyond, we’re already seeing an answer: Philanthropy will increasingly slide into the driver’s seat of public life, with private funders tackling problems that government can’t or won’t. Fabric of our government is not working.

28 https://www. globalcitizen. org/en/action/set/no-one-left-behind/
The Sustainable Development Goals are not only goals for the 193 member states of the UN , but are to adopted by all countries around the world. As we know most governments cannot tackle these goals without significant help Although the Sustainable Development Goals represent agreed common aspirations, the United Nations estimates that reaching the SDGs in emerging markets will cost approximately $3.9 trillion per year and that private and public sources provide just $1.4 trillion per year. As a result, asset managers, financial institutions, governments, foundations, and aid agencies are increasingly placing emphasis on new products and methods of capital allocation to achieve social, environmental and financial objectives. Impact Investing, despite often convoluted and opaque methodologies, has risen to the forefront of the dialogue as a potential ‘silver bullet’ – promises of financial returns above investor hurdle rates while simultaneously achieving social outcomes have proven to be an enticing combination. Impact Investing now represents a subset of every major asset class including private equity, private debt, public equities, ETFs, fixed income and real estate. As toolkits, exit strategies and investor sophistication continue to evolve in emerging markets, and entrepreneurs continue to tackle ‘wicked problems’ that are of increasing urgency, Impact Investing now seeks to align with the sustainable development agenda on a global scale.

29 We are moving into a shift where..

30 Universities want to be apart of the Solution
We all play a part for the Gator Good. By working together, we can make a difference – a very big difference GATORGOOD.COM

31 Our philanthropy focuses on:
Increasing community food security worldwide. Advancing the sustainability of agriculture. Protecting the natural resources upon which food and people depend. We partner with our employees to strengthen our hometown communities worldwide through volunteerism and grant-making addressing local community needs. Increasing food security  Through strategic initiatives, grants, food donations and knowledge sharing, we work to ensure all members of a community have access to nutritious and sufficient food.  Ensuring food for all Together with our nonprofit partners, we work to remove barriers to community food security by expanding access to nutritious foods.  Examples include striving to eliminate food deserts in our hometown communities, or our global initiative to ensure every child begins the day nourished by school breakfast.  Key school breakfast partners include Share Our Strength and Breakfast Club of Canada. Our global food donations provided more than 20 million nourishing meals in 2015 alone. Sharing our food expertise Through partnerships like Partners In Food Solutions and grantees such as Compatible Technology International, we share vital knowledge and solutions with small and growing food companies in the developing world so they can become better food producers. This strengthens regional food systems that can serve millions of people. Expanding capacity Through targeted grant-making we support and strengthen food bank networks nationally and globally, providing food banks with the support they need to grow and provide a greater variety and quality of nourishing food.   We also support the development of innovative solutions such as FoodCloud, that make it easier for food retailers to rescue excess food and donate it to the hungry. Advancing sustainable agriculture To feed a growing world population, we invest in programs that strengthen the food growers from which we source key ingredients. Further, we protect the habitats of food pollinators and  to restore watersheds. Conserving natural resources We invest and collaborate to ensure the world’s watersheds are restored and conserved, beginning with some of the highest risk watersheds that also impact the General Mills sourcing or manufacturing communities. Through our work with The Nature Conservancy and Sustainable Conservation we support water stewardship coalitions. We work together to create and implement action plans to ensure responsible stewardship and conservation of the watersheds we all depend on. Protecting pollinators and habitat  We work to increase pollinator populations through the conservation of habitat. Essential to the reproduction of fruits, vegetables, nuts and other foods, pollinators are vital to food ecosystems. Through partnerships focused on advocacy, education and applied research, we help to ensure pollinators have the environment they need to flourish. Empowering growers  We support smallholder farmers and their families in our sourcing communities through programs led by non-governmental organizations that help farmers increase their livelihoods and improve their well-being. Through the international humanitarian organization, CARE, we invest in programs that strengthen the smallholder farming communities from which General Mills sources ingredients including cocoa and vanilla. Strengthening hometown communities Beyond our grant-making, General Mills invests in initiatives, nonprofits and causes that help strengthen people and planet. A few examples: Outnumber Hunger  Box Tops for Education    Save the Bees/Bring Back the Pollinators 

32 A world of Possibilities
Nepal-Empowering Women through Technology

33 Global Citizen is a community of people like you
People who want to learn about and take action on the world’s biggest challenges. Extreme poverty ends with you. andra.poirier%40mtsu.edu&messageId=ed03766d775c a19c66eb8e9b UN has a Global Citizen initiative to get everyone involved in working with the Solutions Economy. I get messages daily as to what people are doing in various countries to make a difference. To write their government representatives and to sign up to help make a difference.

34 The Power of Connecting Communities
The Community we live and work in The community we sell our products to The Community we buy ingredients from Our purpose is to courageously advance the global movement for social, economic, and environmental justice through our linked prosperity business model. Linked Prosperity Facebook’s CEO Mark Zukenberg, announced has changed their mission as of last week from “connecting people and give them a voice” to “ give people the tools to build community” an example is the Women’s March earlier this year was started on Facebook.

35 Within our own organization we are working to provide solutions
IFHE works with many organizations within the UN and we have representatives who represent us at NGO meetings around the world. Let’s look at trying to solve some of the SDG’s that have been identified in this next slide,

36 Sustainable Development Goals
The Sustainable Development Goals are not only goals for the 193 member states of the UN , but are to adopted by all countries around the world. As we know most governments cannot tackle these goals without significant help

37 …and need effective cross-sector partnerships
What type of partnerships are needed to address complex problems like the SDGs? Examples: …and need effective cross-sector partnerships

38 Independent, funded team dedicated to the partnership
Achieving large-scale change through collective impact involves five key conditions for success Mutually reinforcing activities Common agenda Shared measurement Continuous communication Backbone support Independent, funded team dedicated to the partnership

39 For global partnerships, a multi-layered backbone structure is required
Example: New Vision for Agriculture Multi-layered backbone structure New Vision for Agriculture Global Regional Local

40 PI’s framework to drive partnerships for the SDGs
Supportative national and international policy Infastructure in place to drive partnerships Partnership Follow Best Practice Organizations are fit for partnering 5. Individuals Share Partnering Competencies

41 Why are backbones / platforms for partnership
so important?

42 Why are they so hard to deliver?
Driving forces Restraining forces Diversity of competing perspectives – hard to reach consensus Inclusivity Government bureaucracy / lack of capacity / risk of appropriating the process Government engagement / buy-in Partnerships can take a long time to develop Need to deliver quick results to prove concept Strong global leadership undermining local ownership / priorities Connection into global priorities and support

43 Another strategy is shared-value
“Shared value is not social responsibility, philanthropy, or sustainability, but a new way for companies to achieve economic success.” Michael E. Porter and Mark Kramer, “Creating Shared Value,” Harvard Business Review There are many new methods to solve problems, however shared value is bubbling up to be one of he favorites globally. Everyday all around the globe, McDonald's is putting people, processes and practices into place to make better food, more sustainable sourcing, happier people, a stronger community and a healthier planet. Another strategy is shared-value alue /95/creating-shared-value jpg?cb=

44 Innovating for Shared Value
Embedding a social purpose. This may involve reemphasizing a firm’s founding mission, as Danone’s CEO did in 2000 to refocus the company on its origins as a manufacturer of healthy food. Defining the need. Some firms conduct extensive research to develop a comprehensive view of the social problem. Before launching a micronutrient-reinforced spice product for low-income consumers in India, Nestlé studied nutritional deficiencies in the country and visited 1,500 households to understand cooking customs and diets. Measuring shared value. To monitor an initiative in Brazil to increase the employability of youth, Coca-Cola spent months planning how to achieve business and social goals and then established intermediate measures to track progress. Creating the optimal innovation structure. The right structure for a social enterprise depends on whether the firm already has a clear social purpose, understands the targeted problems, is able to solve them, and builds a strong business case for doing so. Co-creating with external stakeholders. Effective social innovators enlist external stakeholders in their efforts to understand social needs and to execute their strategies. ince their launch, in 2005, Nexera canola and sunflower seeds, used for making cooking oils, have become one of Dow Chemical’s best-selling product lines. The seeds and the oils offer many advantages: The seeds yield more than twice as much oil per hectare as soybeans, making them an attractive crop for farmers. The oils’ longer shelf and “fry” lives lower the operating costs of food manufacturers and food service companies. And, last but not least, the oils have lower levels of saturated fat than competing products and contain no trans fats. Dow’s breakthrough shows business at its best: innovating to meet society’s needs and build a profitable enterprise. In “Creating Shared Value” (HBR January–February 2011), our FSG colleagues Michael Porter and Mark Kramer argue that achieving those twin goals represents the next competitive frontier for companies. Corporate leaders have awakened to that fact. They realize that social problems present both daunting constraints to their operations and vast opportunities for growth. But many are struggling to implement the shared value concept. To assist them, we have studied more than 30 companies that, like Dow, innovate to create scalable models for delivering social benefits and business value (see the exhibit “Who’s Creating Shared Value”). We have found that these companies consistently rely on five mutually reinforcing elements, whose optimal form and balance depend on a firm’s culture, context, and strategy.

45 Strategic Social Partnerships
By erasing boundaries between the public and private sectors, the solution economy has the potential to unlock trillions of dollars in social benefits and commercial value.

46 Strategic social partnerships roadmap
In order to achieve the full benefits of their SSPs and overcome the risks, organizations should follow a roadmap to manage partnerships. The SSP roadmap depicted in figure 2 helps both corporate and social sector organizations navigate the four common challenges, speak the same language, and move from good ideas to successful projects implemented through strong partnerships. The development of partnerships is always an iterative process and should follow five key steps at both the strategic partnership and individual program level, from inception through implementation and even sunsetting. Constantly revisiting some of these questions will help organizations build and maintain successful SSPs. The SSP roadmap described in figure 2 is a tailored approach that helps organizations manage the inherent risks and costs of SSPs and achieve the full value they can help organizations to accomplish. The steps are presented in detail in the appendix.

47 New Stakeholder Roles and Relationships
• The focus on social impact unites the goals of companies, NGOs, and government • Shared value fosters new relationships between companies, philanthropists, NGOs, and government in addressing social issues Traditional Roles New Roles Philanthropists • Donate to charitable causes • Partner with companies and NGOs to catalyze shared value initiatives NGOs • Receive grants to deliver social services • Enable the implementation of new shared value business models Governments • Tax and regulate business; • Make platform investments and support shared operate social programs value strategies; regulate to encourage shared value solutions Companies • Donate to charitable causes or • Partner with NGOs and government ESG Programs to initiate and scale shared value strategies; partner with other companies who share the same social issue

48 From Product to Purpose
Traditional Positioning New Positioning Nestlé • Food and Beverage Company Nutrition Company Nike • Footwear Company Health and Wellness Company Thermo Fisher • Scientific and Laboratory Making the World Instruments Company Healthier, Cleaner, and Safer • A broader sense of social purpose opens up new opportunities for growth and profitability, while motivating and attracting employees, consumers, business partners, shareholders, and the public

49

50 The Role of Investors in Creating Shared Value
Socially Responsible Investing (SRI) Maximize Shareholder Value Shared Value Investing Impact Investing • Opportunity to drive economic value through social impact • The fiduciary duty of investors is to focus on economic return • Desire to invest in “good”companies • Business can have both economic and social purpose • Good social and environmental performance signals good management and mitigates risk • Introduces a negative screen into investment analysis • Invest in entities that generate social returns along with economic returns • All companies can create shared value • Shared value expands the opportunity set • A natural extension of traditional investment analysis

51 Measuring Shared Value
Topics: Shared Value, Strategic Learning & Evaluation Share                                                                                                                                                                                                                                                                 Measuring Shared Value

52 References 1. United Nations, “World population projected to reach 9.6 billion by 2050 with most growth in developing regions, especially Africa—says UN,” press release, June 13, 2013, 2. International Energy Agency, accessed April 13, 2015. Water Resources Group, Charting our water future: Economic frameworks to inform decision-making, 2009, 4. JP Morgan, Watching water. 5.

53 Thank You Dr. Sandra Poirier, CFCS, LD/N Middle Tennessee State Univ.


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